Nonparametric Analysis of Random Utility Models
By Y. Kitamura, Jörg Stoye. 2016
128 citations recorded by the source corpus.
This paper develops and implements a nonparametric test of Random Utility Models. The motivating application is to test the null hypothesis that a sample of cross-sectional demand distributions was generated by a population of rational consumers. We test a necessary and sufficient condition for this that does not rely on any restriction on unobserved heterogeneity or the number of goods. We also propose and implement a control function approach to account for endogenous expenditure. An econometric result of independent interest is a test for linear inequality constraints when these are represented as the vertices of a polyhedron rather than its faces. An empirical application to the U.K. Household Expenditure Survey illustrates computational feasibility of the method in demand problems with 5 goods.
Subfields: Economics and Econometrics, Marketing
View Paper: https://www.semanticscholar.org/paper/bf9c94b6490959cf28ce7b74537e39d7b0c3586a
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In Economics and Econometrics
- Debopam Bhattacharya
- Russell Davidson
- Amanda Starc
- Stephen G. Donald
- G. Barrett
- Douglas L. Miller
- Colin Cameron
- Emmanuel Flachaire
In Marketing
Citations in the corpus
- Nonparametric Welfare Analysis for Discrete Choice (2014, methodology): “Kitamura and Stoye, 2013 (see also McFadden and Richter, 1991) have also worked under heterogeneity of unspeci ed dimension and provided tests of consumer rationality in that framework.”